In a significant move to fortify the semiconductor supply chains, the Biden-Harris Administration has presented its strategic vision under the CHIPS for America initiative. The U.S. Department of Commerce has outlined a comprehensive plan to strengthen and enhance the semiconductor industry, with a particular focus on investments and incentives. This announcement comes as part of President Biden’s broader “Investing in America” agenda, aimed at driving economic growth, creating jobs, and fostering innovation.
The Department of Commerce has introduced a funding opportunity and application process for large-scale semiconductor supply chain projects, including materials and manufacturing equipment facility projects with capital investments of $300 million or more. Additionally, a separate process will be established later in the fall for smaller projects that fall below this investment threshold.
The administration’s strategic objectives for semiconductor investments include bolstering supply chain resilience by mitigating risks associated with geographic concentration, promoting U.S. technology leadership, and supporting vibrant U.S. fab clusters. These objectives are detailed in the “Vision for Success” document released by the Department of Commerce.
To gauge industry interest and engagement, the Department of Commerce has received nearly 400 statements of interest from companies across 37 states seeking to undertake semiconductor projects. This overwhelming response reflects the private sector’s eagerness to invest in America and aligns with the administration’s commitment to revitalizing domestic supply chains.
Under the CHIPS and Science Act, the Department of Commerce has been entrusted with over $50 billion to revitalize the U.S. semiconductor industry, including $39 billion specifically allocated for semiconductor manufacturing incentives. The application processes and timelines for various funding opportunities have been outlined, with pre-applications and full applications being accepted on a rolling basis for leading-edge, current-generation, and mature-node commercial facilities. A specific timeline has also been provided for larger materials and manufacturing equipment supplier facility projects.
International coordination and engagement with U.S. partners and allies are emphasized as crucial aspects of the CHIPS for America initiative. The Department of Commerce will actively engage in bilateral and multilateral dialogues to strengthen and diversify the global semiconductor supply chain. Collaborations with countries such as the Republic of Korea, Japan, India, and the United Kingdom, along with various international forums, will be pursued to achieve shared goals and enhance collective security.
CHIPS for America encompasses both the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for research and development programs. These offices operate within the National Institute of Standards and Technology (NIST) under the Department of Commerce. NIST’s expertise, industry relationships, and reputation for fairness make it an ideal administrator for the CHIPS for America program.
The administration’s outlined plan and funding opportunities signify a concerted effort to bolster the semiconductor supply chains, enhance national security, promote economic growth, and maintain U.S. leadership in semiconductor technology. The Biden-Harris Administration’s commitment to investing in America’s future is underscored by these strategic initiatives within the semiconductor industry.